Class 2 and 4 (self-employed)

Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

2020/21:

Class 2

(£)

Flat rate per week

3.05

Small Profits Threshold (per annum)

6,475

2019/20:

Class 2

(£)

Flat rate per week

3.00

Small Profits Threshold (per annum)

6,365

No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4

2020/21:

Annual profits

%

Up to £9,500

Nil

£9,500.01 - £50,000

9

Over £50,000

2

2019/20:

Annual profits

%

Up to £8,632

Nil

£8,632.01 - £50,000

9

Over £50,000

2

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.

Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Address

Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be viewed at www.auditregister.org.uk under reference C005395100.

A member of the ICAEW Practice Assurance Scheme

COVID-19

Please note our office is now closed due to the current Coronavirus (COVID 19) pandemic and will remain so until further notice.

Business however is continuing as usual with all the team working remotely. Please contact the person you would normally deal with using their email address, or email us at enquiries@higson-accountants.co.uk with details of your query and your contact details.

We will continue to monitor the situation and are regularly updating our website with the latest advice and guidance from the government.

At Higson & Co we are committed to supporting and guiding our clients who are affected during these challenging and unprecedented times.